Inconsistent chatter from a Sacramento-based 'Sconi attorney.

Friday, January 28, 2011

Gambling Expenses aren't limited to Winnings

Tax Court: pro gamblers can't deduct net gambling losses, but their other gambling expenses aren't limited to winnings: "

A professional gambler -- arguing without a lawyer -- convinced the Tax Court to overturn an old ruling by allowing the deduction of non-gaming losses.

Gamblers cannot deduct gaming losses that exceed their gambling winnings, the court ruled, and professional status does not change that. But professional gamblers have other expenses away from the table -- travel, for example -- and the court ruled such expenses aren't considered 'gambling losses' and aren't limited to gambling winnings. Tax-blogging poker maven Russ Fox has the details.

Cite: Mayo, 136 TC No. 4

UPDATE: Roger McEowen has more.

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